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This Stock Exchange Opened With Just One Company Listed

March 25, 2016, 7:37 PM UTC
MYANMAR-STOCKS
This photo taken on February 24, 2016 shows Myanmar business school students viewing the electronic board display during a visit to the Yangon Stock Exchange, housed in a historic building in Yangon. Myanmar officially launched its first modern bourse in December 2015, following nearly half a century rule of military junta with trading expected to begin around March, as the nation's latest drive for economic revitalisation struggles to take flight. The bourse is housed in a newly restored colonial-era building constructed in 1939 as the Reserve Bank of India, the British colonial government primary bank, survived Japanese occupation in World War II and became Union Bank of Burma in 1952 following the countrys independence. AFP PHOTO / ROMEO GACAD / AFP / ROMEO GACAD (Photo credit should read ROMEO GACAD/AFP/Getty Images)
Romeo Gacad — AFP/Getty Images

Politically and financially troubled Myanmar just opened its first and only stock exchange to local investors, trading just one company with a market cap of $598 million.

That makes the country’s stock exchange the second smallest in the world behind Cambodia, which touts an market capped at $103.1 million. It’s a microscopic slice of the global market cap, which was estimated to be around $70 trillion in mid December by Visual Capitalist.

The debut is largely symbolic for the country, which is among the poorest in the world, reported the Wall Street Journal. The majority of Myanmar’s citizens don’t use banks to hold their savings, but instead hoard their cash in wads and still barter for goods. Retirement accounts, asset management, hedge funds, and mutual funds are even more elusive in the country.

“We can now proclaim to the world that we are no longer a backward nation [because] we have a stock exchange,” said Maung Maung Thein, outgoing deputy finance minister and chair of the securities and exchange commission. Thein called the opening a farewell gesture to the new government. The stock market was set up by the military-backed government.

 

The one stock on the market is First Myanmar Investment, a health care and real estate conglomerate that started in 1992 and derives most of its revenue from real estate. The company isn’t creating any new shares, but moving existing trades on to the stock market.

But it does raise questions about the future success of the market. The incoming government, dominated by the National League for Democracy which is headed by Aung San Suu Kyi, isn’t filled with academics or finance professionals, but rather, activists and former political prisoners, the Journal reported.